More steaming rubbish from Gottiboff today:
I have a warning for Scott Morrison and Josh Frydenberg——many oldies don’t like what you are doing.
It all starts with the Reserve Bank, which believes that if it lowers interest rates it will lower unemployment.
Ranking second and third are retail and construction. There is no doubt that construction will benefit from lower interest rates, but retail is a totally different story.
Thanks to the research work of one of our top retail analysts, Foreseechange, we know that among the segments of the community, Australians aged over 65 are the most willing to spend in retail.
But whereas in the 2009 global financial crisis they represented 17.6 per cent of the population their proportion has risen to 20.4 per cent. Adults aged over 65 have been the powerhouse of retail shop spending.
Seen that grey army down at the mall? How is 20% of the population driving retail? Answer, they’re not, from the RBA:
There are causes for concern around consumption:
- trashed house prices have done a lot of damage which lower interest rates are designed in part to remedy and will benefit the aged most;
- the wages crush will get worse before it gets better owing to the mass immigration model and weak domestic demand.
Longer term I would be very happy to see rising interest rates to support savers of all ages. But to do that we need also to offer a circumstance in which domestic demand and wages are rising while households deleverage. In turn, that requires structural change in Australian growth drivers from asset inflation to tradables and value-add productivity sectors, and probably ten years of helicopter money as well. All reforms that Gottiboff will fight to the death.
Gottiboff just wants his older cohort to suck the place dry. Retire and start consuming yourself mate.
